Is the Post Office Monthly Income Scheme For Senior People?

Individuals who, like any other nationalized bank, have utilized the Post Office as a safe haven for money deposits and transactions in the past. This is particularly true for the elderly in the country. At Post Office branches across the country, a variety of savings options are available. Continue reading to learn more about the Post Office Monthly Income Scheme (POMIS).

Features of Post Office Monthly Income Scheme

1. The Post Office Monthly Income Scheme (POMIS) investing plan pays monthly interest on the amount deposited. Individuals can withdraw at any time or set up an automated withdrawal and credit to their savings account.

2. Individuals can only deposit in multiples of Rs 1,000 into the POMIS account. As a result, the minimum deposit amount in many methods is Rs 1,000.

3. A single account subscriber can only deposit up to Rs 4.5 lakh, whereas joint account holders can deposit up to Rs 9 lakh.

4. In a single account or a joint account, an individual can invest a maximum of Rs 4.5 lakh.

5. Beginning April 1, 2020, the interest rate on the Post Office Monthly Income Scheme investment plan will be 6.6 percent per year, payable monthly.

6. The account is locked in for 5 years from the date of opening.

7. Once a year has passed, an individual may withdraw. Premature withdrawals, on the other hand, incur a charge. If a person withdraws before the three-year period, they will be fined 2%. Furthermore, if a person leaves after three years, the charge is only 1%.

Eligibility Criteria

The Post Office Monthly Income Scheme (POMIS) was created for risk-averse people who do not want to invest in equities but still want a consistent monthly income. It is well-suited to the demands of older folks and retirees who have recently entered the no-paycheck zone and are willing to make a one-time investment in order to obtain a stable, regular income to maintain their standard of living. The only stipulation is that the investor becomes a permanent resident of India. Non-resident Indians are not eligible for the Post Office Monthly Income Scheme. This post office savings plan's strongest advantage is that it has a ten-year entry age limit. As a result, a ten-year-old youngster can open a POMIS account in his name. For minors, the maximum investment limit is set unilaterally.

Post Office Monthly Income Scheme Benefits for Senior Citizens

1. The Senior Citizen Savings Scheme is available through the Post Office (SCSS)

2. Senior citizens receive a 6.6% yearly interest rate.

3. Interest is paid quarterly, starting on the day of deposit and ending on the 31st of March/June, the 30th of September, and the 30th of December.

4. Individuals must deposit a minimum of Rs 1000 in multiples of 1000 in each Senior Citizen Savings Scheme (SCSS) account they register, with a maximum limit of Rs 15 lakh.

5. Investments made under this scheme are eligible for a tax credit under Section 80C of the Income Tax Act of 1961.

Take Away

A variety of guaranteed investment options are available through the post office depository service. All of these projects are supported by a sovereign guarantee, implying that the government is behind them. As a result, these plans are more secure investment options for individuals than stocks and many fixed-income options.

Also Read: Is it Worthwhile To Invest In Life Insurance Riders?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.